It's not too hard to make money investing in companies that make things, but successful investing in companies that build things has proven quite a bit more challenging. Not only is there rampant competition in engineering & construction (E&C) to keep a lid on prices, but many a contractor has run into trouble with cost overruns. All told, this is a sector where the relative few companies that earn decent (or good) returns on capital are more than offset by those who fall short - in other words, this is a sector where picking the right company/stock matters.
Maybe Matrix Service (NASDAQ:MTRX) is one of those better picks. The company's recent ROICs haven't been super, but nor have...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|